Duress

Duress

1. 'some form of coercion or threat to the person, property, or to a person's financial interests'

   • Poole

2. duress of the person

   • eg threats to kill or violence to someone if they do not vary contract
   • causaton
     • duress does not need to be 'the' reason for entering contract, just 'a' reason
       • Barton v Armstrong

3. duress to goods

   • eg threats to burn down someone's house if they do not sign a contract
     • causation
       • 'but for' test
         • 'but for' the duress, c would not have entered into contract
           • The Siboen & The Sibotre

4. economic duress

   • eg knowing c has no other option but to enter into contract so financially exploiting that (eg demanding double payment because no other taxis available)
   • variation made under duress is voidable
   • DSND Subsea v Petroleum Geo
     • must be pressure resulting in
       • lack of practical choice for victim
         • did v have any realistic practical alternative but to submit to the duress?
         • B&S Contracts v Victor Green
           • stalls needed to be set up for a show
         • Atlas Express v Kafco
           • christmas baskets had to be delivered on time
         • Carillion Construction v Felix
           • sub-contractors referring to main contractor's penalty clause as reason for delaying
       • which is illegitimate
         • threatened breach of contract?
           • highly likely to be illegit (though not necessarily so)
           • Atlas Express v Kafco
           • B&S Contracts v Victor Green
           • Kolmar v Traxpo
         • pressure applied in good/bad faith?
           • 'bad faith' is an attempt to claim money that you know you are not entitled to
           • DSND Subsea v Geo
             • refusing to continue dangerous diving work without insurance was not bad faith
           • CTN v Gallagher
             • a threat to not contract in future is legit and not bad faith
           • The Universe Sentinel
             • although was legit for dockers to strike, it was bad faith for them to do so in order to extort money from ship's owners
           • Alec Lobb v Total Oil
             • a freely negotiated hard bargain is not duress
         • did victim protest?
           • at the time threat was made?
           • B&S Contracts v Victor Green
             • protested immediately
           • Atlas Express v Kafco
             • protested at the time and sued afterwards after submitting to duress
         • did victim affirm?
           • did v immediately seek redress or affirm the contract by not acting?
           • The Atlantic Baron
             • 8 months was too long before going to court. held to have affirmed.
           • DSND Subsea v Geo
             • variation wasa only protested on grounds of duress at a later date
       • which is a significant cause inducing c to enter contract
         • 'but for'
           • Huyton v Peter Cremer

5. renders contract / variation voidable

   • if variation, original contract remains legit, only the variation under duress is voidable
   • voidable = remains valid until victim takes perpetrator to court to get contract set aside